• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Ct2 IAI april 2016

S

Shikha Agarwal

Member
I have few queries:
1) Q13: BcS scenarios, If we have sold 7 option to buy 100 shares(each) in 1 month tim at 1100 and prices go up to 1150, it will be buyer (long position) of option who is likely to not exercise the option as he can sold them at high prices to somone else. WHY do he have to pay additional premium?
.
2) Q14: what are they trying to ask? Its a pvt ltd company, how can they issue debentures and warants(it is stock exchange traded)

3) Q16: if we consider tax benefit of other expenses at t=0 rather than 1.. woukd it be wrong?
.

Please reply asap!
 
Q16 it won't be wrong. They have also mentioned it in the solution that some students will take 1.25 tax savings in year 0 and 18.75 in year 1.
 
Yes... but they hav not mentioned whether that would be considered correct or not! :(
 
You must log in or register to reply here.
Back
Top